Bmw car finance

Trapventures

Hi all, quick question. I’m going for BMW finance, I have a £2k deposit ready and I’m awaiting a verdict.

My credit file isn’t perfect but it definitely isn’t poor, no recent issues as of the last 6-12 months. Everything on time.

I done the initial application yesterday and he come back saying it was a “maybe” they want to see my pay slips and bank statements as they feel I am “stretched”.

This is not the case, I earn around £3000 a month after tax and my outgoings do not exceed £1000. Affordability isn’t the issue.

What could they be looking for?

k3lvc

Trapventures wrote: »

Hi all, quick question. I’m going for BMW finance, I have a £2k deposit ready and I’m awaiting a verdict.

My credit file isn’t perfect but it definitely isn’t poor, no recent issues as of the last 6-12 months. Everything on time.

I done the initial application yesterday and he come back saying it was a “maybe” they want to see my pay slips and bank statements as they feel I am “stretched”.

This is not the case, I earn around £3000 a month after tax and my outgoings do not exceed £1000. Affordability isn’t the issue.

What could they be looking for?

Potentially why on £3k nett p/m you 'only' have £1k outgoings and yet only a £2k deposit ?

Willing2Learn

Hi Trapventures and welcome to the forum

Trapventures wrote: »

My credit file isn!!!8217;t perfect but it definitely isn!!!8217;t poor, no recent issues as of the last 6-12 months. Everything on time.

What exactly does that mean? Have you got a history of late payments, arrears or defaults on your credit files? Is your credit utilisation high?

bazzyb

Trapventures wrote: »

I done the initial application yesterday and he come back saying it was a “maybe” they want to see my pay slips and bank statements as they feel I am “stretched”.

This is not the case, I earn around £3000 a month after tax and my outgoings do not exceed £1000. Affordability isn’t the issue.

What could they be looking for?

It is difficult to second guess what exactly an underwriter is looking at but from what you have posted it sounds likely that they feel you appear heavily committed from what they can see on your credit file vs your declared income.

They will be likely be looking at two aspects - capacity and affordability. Payslips will show that your income is what you say it is (capacity). Bank statements will show your account conduct, they will most likely be checking that you aren't constantly running your account down to a zero balance/overdrawn, no payday loans, no bounced direct debits etc (affordability).

Trapventures

I live with parents, I have no mortgage, no high credit card payments, no responsibilities aside from minor Things.

Trapventures

In relation to your comment on capacity etc, they never actually asked me for my salary, so I guess seeing it should confirm affordability.

Trapventures

Hi willing2learn I haven’t had a late payment in over a year, 1 in 2 years.

No defaults/CCJ’s or arrears.

Utilisation is fairly high on 1 card due to a holiday, otherwise no. And my limit was just considerably increased on my other card. So total utilisation is fairly low across both.

Herzlos

So what have you been doing with this spare £2k/month?

Is your pay just salary or bojus/unpredictable?

Trapventures

What I am doing with it isn’t really relevant but general spending + saving + holidays.

And no what I quoted the dealer is my BASIC, in actual fact I earn about £15-20k above the quoted from my line of work. Addition 10k a year side work. Seperate income. To give some clarity.

macman

So with substantial savings every month, you should be able to come up with a much bigger deposit than just £2K?
You haven't said how much you are actually looking to borrow

Trapventures

Putting a high deposit on a car is pointless. I’m not fussed about the Monthly, I’d rather manage cash flow than one big lump sump leaving on something I have no intention of owning.